On a seasonally adjusted basis, the NAB Online Retail Sales Index recorded a drop in growth in July
Insight
June 21, 2022
US Economic Update – June 2022
The Fed tightens the screws.
Key highlights:
- The Fed lifted the fed funds rate at its June meeting by 75bps and flagged further increases which should see it move above its estimated neutral level.
- We expect a peak fed funds rate target range of 3.25%-3.50% in early 2023.
- Given the move to restrictive monetary policy and other global economic headwinds (commodity price shock, China disruptions due to COVID), we expect growth to slow to a crawl by around mid-2023. As a result, it is likely that the US will go into recession next year.
Find out more in NAB’s US update (June 2022)
